← QCE Digital Solutions Unit 1

Economic impacts of a digital solution

An effect on money, jobs, costs or markets, such as savings for users, new businesses, jobs created or lost, or the cost of access.

Part of: QCE Digital Solutions Unit 1 — Understanding Digital Problems — Module 63

Understanding Economic impacts of a digital solution in QCE Digital Solutions Unit 1

What it does: Money users no longer have to spend is a cost saving, which is a positive economic impact. When automation takes over tasks that people were paid to do, jobs are lost. This is a negative economic impact on workers. Income earned and the value of taxi licences are effects on money and markets. A password login is a security feature, not an economic effect. Feelings of pride are a personal impact. New businesses, savings and costs are economic impacts.

Common mistakes: A double == compares values instead of assigning, so new_cost is never created and the saving line fails. It should be new_cost = 80. An if statement must end with a colon. It should be if net > 0: so the indented line runs when jobs are created overall.

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This module's key terms are also in a printable crossword (Modules 60–81) and word search (Modules 1–81).

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Learning
Duo
A banking app lets customers pay bills without visiting a branch, saving them travel and fee costs. What kind of impact is this?
Economic impact: cost savings for usersTechnical constraint on the solution
Matches
impact = "economic: the app has a blue colour scheme"
↓
A colour scheme is a user interface choice. It has no effect on money, jobs, costs or markets, so it is not an economic impact.
Applying
Meanings
Term
economic impact
Meaning
An effect on money, jobs, costs or markets, such as savings for users, new businesses, jobs created or lost, or the cost of access.
Practice
Solution: mobile banking app
Testing
Gaps
An impact affects money or jobs.
Check Answer
Spots
1old_cost = 120
2new_cost == 80

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Quick Questions

1. A banking app lets customers pay bills without visiting a branch, saving them travel and fee costs. What kind of impact is this?
A. Technical constraint on the solution
B. Economic impact: cost savings for users ✓
Money saved by users is an economic impact. A technical constraint is a limit on how the system can be built, not an effect on people.
2. Which statement describes an economic impact of a self-serve checkout system?
A. Some cashier jobs may be lost while new tech support jobs are created ✓
B. The buttons are large enough for people with low vision to press
Jobs created or lost are economic impacts. Large buttons relate to accessibility and usability, which are UX concerns.
3. A food delivery app helps small local cafes reach new customers across the city. This is an example of:
A. A new market opening up ✓
B. A legal constraint on the cafes
Reaching new customers creates a new market, which is an economic impact. It is not a legal constraint.
4. True or false: An online learning platform that needs a fast internet plan and a laptop can create an economic impact through the cost of access.
A. False
B. True ✓
The cost of access is an economic impact. Students who cannot afford devices or data may be left out, while others save on travel and textbooks.
5. Which is the better example of a economic impact of a ride-share app?
A. Drivers earn income, but taxi licence values drop ✓
B. The app asks users to log in with a password
Income earned and the value of taxi licences are effects on money and markets. A password login is a security feature, not an economic effect.

Match the Pairs

economic impact → An effect of a digital solution on money, jobs, costs or markets
cost of access → The money a user must pay to use a solution, such as a subscription, a device or an internet plan
Cost savings for users: an online banking app removes the fees for paper statements and branch visits → impact = "economic: users save money on fees"
Jobs lost: self-checkout kiosks replace some supermarket cashier roles → impact = "economic: cashier jobs lost"
impact = "economic: the app has a blue colour scheme" → A colour scheme is a user interface choice. It has no effect on money, jobs, costs or markets, so it is not an economic impact.
impact = "economic: a new delivery app only creates jobs" → This ignores the other effects. The app may also cost small shops commission fees and cause some jobs to be lost, so the claim is too narrow.

Key Term

economic impact
An effect on money, jobs, costs or markets, such as savings for users, new businesses, jobs created or lost, or the cost of access.

Fill in the Blanks

1. An economic impact affects money or jobs.
Hint: Type the word for the kind of impact that is about money, jobs, costs or markets.
2. A free banking app gives users savings.
Hint: Type the noun for money users keep because they pay less in fees.
3. Kiosks can cause jobs to be lost.
Hint: Type the word for what happens to jobs when automation replaces workers.
4. A delivery app opens a new market.
Hint: Type the word for a place or group where buyers and sellers trade.
5. Data fees raise the cost of access.
Hint: Type the word for being able to reach and use a digital solution.

Spot the Error

Question 1
A old_cost = 120
B new_cost == 80
C saving = old_cost - new_cost
D print('Saving:', saving)
Line B — A double == compares values instead of assigning, so new_cost is never created and the saving line fails. It should be new_cost = 80.
Question 2
A jobs_lost = 12
B jobs_created = 20
C net = jobs_created - jobs_lost
D if net > 0
E print('Jobs grew')
Line D — An if statement must end with a colon. It should be if net > 0: so the indented line runs when jobs are created overall.
Question 3
A customers = 500
B new_market = customers 0.2
C total = customers + new_market
D print(total)
Line B — There is no operator between customers and 0.2, which is a syntax error. The new market size is 20% of customers, so it should use * 0.2.
Question 4
A monthly_fee = $15
B months = 12
C yearly = monthly_fee * months
D print('Yearly cost:', yearly)
Line A — A $ sign is not allowed inside a number in Python. The cost of access should be stored as the plain number 15.
Question 5
A prices = [10, 25, 40]
B total = 0
C for p in prices:
D total = total - p
E print('Access cost:', total)
Line D — The loop should add each price to build the total cost of access. Subtracting gives a negative number. It should be total = total + p.

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